Uber may drive Ola away with controlling stake

Uber may drive Ola away with controlling stake

Jrr tokein
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http://www.dnaindia.com/money/report-uber-may-d... https://cdn2.desidime.com/assets/textile-editor/icon_toungueout.gif

Sources say, except SoftBank, all other shareholders are being bought out

Looks like warring taxi aggregators Uber and Ola may shake hands and close a deal soon. A source, who did not want to be named, told dna that Uber is close to acquiring a controlling stake in rival Ola.

He claimed that except for Japanese investor SoftBank, the rest of the shareholders in the Bengaluru-based start-up, including promoters Bhavish Aggarwal and Ankit Bhati, would exit from it.

The source said that Aggarwal’s stake of around 17% has been valued at $680 million and the enterprise value (EV) of the cab-hailing company has been estimated at $4billion.

According to him, the stake of the biggest stakeholder, SoftBank, in Ola would be around 26% after the deal.

“Uber is buying a controlling stake in Ola, where all the shareholders, except SoftBank, is being bought out. The enterprise valuation is being estimated at $4billion,” said the source.

He did not provide more details. The deal is being worked out between the cab-summoning rivals, but said that due diligence would be completed soon and a term sheet could be signed in the current quarter itself.

Ola executives and spokespersons neither denied nor confirmed the deal. An email sent by dna went unanswered till the time of going to press. When contacted, Anand Subramanian, senior director (marketing and communication), Ola, told dna he would get back after consulting his company officials but did not respond to calls made to him later.

5 Comments  |  
4 Dimers
Jrr tokein
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Denied by the company

http://scroll.in/latest/806699/ola-rubbishes-re...

Ola rubbishes report claiming investors are selling their stakes to Uber
‘Dna’ defended its story, saying that the taxi aggregator’s spokespersons had neither denied nor confirmed the deal when its reporter approached them

Bengaluru-based taxi aggregator Ola on Friday categorically denied a news report claiming that some of its investors plan to sell their stakes to rival Uber. A statement released by Ola’s promoters ANI Technologies Private Limited said that the report, which was attributed to an unnamed source, is “completely false, misleading, malicious and planted…with the intent of causing harm to the Ola brand and creating confusion among our stakeholders”.

A report published by English daily dna on Friday quoted an unnamed source as saying that except for Japanese investor SoftBank, the rest of Ola’s shareholders would sell their stake. The source also told the newspaper that the enterprise value of the company has been estimated at $4 billion.

Ola’s statement said, “We are shocked and dismayed at the lack of journalistic ethics in carrying the story, despite our repeated denial to the reporter and the publication’s editorial representatives. We also had received a verbal confirmation that the report shall not be carried given the company’s denial.”

The company said it plans to initiate legal action against the English daily, along with seeking compensation for the “damage caused to us by this irresponsible reporting”.

However, dna defended its report, saying that Ola’s executives and spokespersons had neither denied nor confirmed the deal when its reporter approached them. “An email sent by dna went unanswered till the time of going to press. When contacted, Anand Subramanian, senior director (marketing and communication), Ola, told dna he would get back after consulting his company officials but did not respond to calls made to him later,” the daily said in a report

Jrr tokein
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Quite a curious case because this is what Ola did exactly when it bought out Taxiforsure. Float rumours, make the rumours sound true and eventually corner the promoters to sell the stake. A classic case of pot calling the kettle black https://cdn2.desidime.com/assets/textile-editor/icon_toungueout.gif

Reference:-
http://www.livemint.com/Companies/t7TozTlZCAmvt...

Bal ganesh
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Thx. Not good news for us customers.

Altruist
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"@caks2006407":http://www.desidime.com/users/47633 wrote:

Thx. Not good news for us customers.

yes… no rivals means they will hike charges.

6ba988347a49afbd094dc526e224e5864d79aaf9
Deal Subedar
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https://cdn1.desidime.com/assets/textile-editor/icon_eek.gif Ola has a greater mkt share in India than Uber and many drivers are ditching uber fr OLA .. They why So https://cdn1.desidime.com/assets/textile-editor/icon_confused.gif
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